USDA announced a third installment in a series of regulatory reforms under the Packers and Stockyards Act, which Ag Secretary Tom Vilsack says is intended to level the playing field for producers.
“This is about the poultry tournament system that exists doing poultry produces integrators where they are essentially in a position in the past to either earn more or actually earn less based on the condition and circumstances of whatever they produce. This is a rule that is essentially creating a much more balanced and fair tournament system, in which producers can earn additional bonuses, but won’t necessarily be penalized. This rule will provide them additional input concerning their responsibilities and better understand the integrators’ responsibilities relative to input requirements, capital improvements, and things of that nature. So it’s it’s really focused on the poultry tournament system.”
USDA and the Department of Justice have enhanced the Packers and Stockyards Act in the poultry sector, resulting in two key consent decrees. In 2022, Cargill, Sanderson, and Wayne Farms settled over antitrust wage-fixing, awarding $85 million to poultry workers and capping tournament performance at 25 percent of grower pay.
In November 2023, Koch Foods resolved charges of imposing excessive termination fees on growers seeking other contracts. The new rule takes effect in July 2026.
